Riksbank hold its policy rates at 1.75% as expected; Board therefore assesses that the policy rate should be raised more going forward than projected in the June forecast, for inflation to stabilise around 2%; hikes are expected to begin this year

FORECASTS Raises its 2026 CPI forecast to 0.9% (prev. 0.6%), 2027 to 3.2% (prev. 2.7%), and cuts 2028 to 3.1% (prev. 3.4%) Raises its 2026 GDP forecast to 2.8% (prev. 2.2%) Raises its policy rate forecast to 1.85% in Q4 2026 (prev. 1.82%), 2.07% in Q1 2027 (prev. 1.89%), 2.24% in Q2 (prev. 1.93%), 2.38% in Q3 (prev. 1.97%) and 2.41% in Q3 2028 (prev. 2.10%). INFLATION There are still risks that inflation may be higher than in the forecast. If there were to be signs of a larger and more persistent upturn in inflation, the Riksbank would raise the policy rate at a faster pace than in the current forecast. ECONOMY Economic upturn appears to be broad and sentiment in the economy has improved further. Indicators point to some improvement in the labour market. GDP grew faster than expected during the second quarter, but this is to some extent assessed to have been due to temporary factors.